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Is CenturyLink Getting a Good Deal With Qwest?

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The situation looks rather bleak for Qwest Communications International. The phone company, which is being acquired by CenturyLink for about $10 billion, continues to lose profits as fewer people find the need for home phones in the era of smart phones. Second-quarter profits were down by 25 percent, according to Bloomberg.

If you’ve had your television on or opened your mailbox lately, you probably know that Qwest is promoting its high-speed Internet service. The reason, Bloomberg writes, is to offset losses of home-phone customers—a similar strategy to that of CenturyLink.

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The Minneapolis-St. Paul Star-Tribune notes that Louisiana-based CenturyLink is about half the size of Qwest, and Qwest’s small competitors are questioning CenturyLink’s financial strength and technical expertise in running a 14-state telephone network while also promising to cut $575 million in costs.

While CenturyLink says it can handle the transition, Qwest CEO Ed Mueller says Qwest isn’t just a phone company: “We’re a broadband company and we mean it” (via the Denver Business Journal). Qwest has extended fiber-optic cables to five million households across its service turf, Mueller adds.

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